Del Monte buys broth and stocks brand Kitchen Basics from McCormick
The purchase for an undisclosed amount will strengthen the company’s branded portfolio while complementing College Inn, its existing product in the category.
Del Monte Foods purchased Kitchen Basics, a line of ready-to-use stocks and broths, from McCormick & Co., boosting the CPG’s retail presence in a category popular with at-home cooks.
The purchase of Kitchen Basics strengthens Del Monte’s growth strategy as the 136-year-old company focuses on broadening its brand portfolio. It also expands the reach of its stocks and broths business while providing additional scale to help Del Monte grow the category across its North American footprint.
“Del Monte Foods has gone through a positive transformation over the past five years,” Greg Longstreet, its president and CEO, said in a statement. “As we plan for the next decade of growth, we’re committed to strengthening our branded product portfolio to meet consumers’ changing needs.”
Kitchen Basics was founded in 1996 and purchased 15 years later by McCormick. Today, Kitchen Basics has an extensive portfolio of conventional and organic stocks and broths in varieties including traditional chicken and beef as well as newer items such as creamy bean and vegetable.
The acquisition of Kitchen Basics comes as people spend more time using products such as broths and stocks to make their own meals. Globally, the stocks and broths market, is expected to climb from $3.4 billion in 2020 to $4.1 billion in 2027, a compound annual growth rate of 2.9%, according to data from Research and Markets.
While some consumers are venturing back out, there is an expectation that trends that gained momentum during the pandemic will remain, providing further demand for Kitchen Basics and similar brands on the market.
For much of the past several years, Del Monte has focused on innovating and rolling out new products under the leadership of Longstreet, who took the helm in 2017 after more than a decade at Hormel Foods.
The deal for McCormick marks a rare divestiture for a Maryland-based company that has focused on broadening its already robust portfolio of flavors, spices, seasonings and condiments through a series of acquisitions.